Cambodia’s exports to Japanskyrocketed in the first quarter of the year thanks to the improvement in regional connectivity within the 10 Southeast Asian nations.

As per the latest data from the Japan External Trade Organization (JETRO), total exports from Cambodia reached almost $329 million in the first quarter of the year, a big increase of more than 34 percent, compared with $245 million in the same period last year.

According to Hiroshi Suzuki, CEO/Chief Economist for the Business Research Institute for Cambodia, the increase in items would be garment products and shoes. He said Cambodia has good advantages for the production of these items. The advantages are lower labor costs and improved logistical connections with Japan.

Products mainly Cambodia exported to Japan were garment products, footwear, sugar, fish and seafood, and the country imported machinery, cars, electronic products, meat, iron, steel and pharmaceutical products from Japan.

The Cambodia-Japan Association for Business and Investment (CJBI) was officially launched in late March to bring business groups in the two countries together. Now there are 250 Japanese companies that invest in Cambodia, while 222 companies enrolled in the association.